The Power Is Now FTHB 11 12 2017 Church Of All Saints

Eric L. Frazier MBA President|CEO|Broker CAL BRE 01143484 NMLS 461807 Office: 800-401-8994 x 703 www.thepowerisnow.com CAL BRE 1980407 NMLS 1435243

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Eric L. Frazier MBA President|CEO|Broker CAL BRE 01143484 NMLS 461807 OFFICE: 800-401-8994 x 703 CELL: 714-475-8629 4

WEBSITE: WWW.THEPOWERISNOW.COM START YOUR APPLICATIONI ONLINE: WWW.APPLYTOBUYNOW.COM JOIN THE BUYERS CLUB TODAY: WWW.NEVERRENTAGAIN.COM RE AGENTS PLEASE BECOME A REFERRAL PARTNER: WWW.NEVERLEASEAGAIN.COM OR JOIN OUR TEAM:

https://thepowerisnow.com/be-one-of-us/

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WE ARE LIVE ONLINE RIGHT NOW ON FACEBOOK THIS PRESENTATION WILL AVAILABLE ON BTR

BROADCASTING THROUGH TWO PLATFORMS & SYNDICATED TO ITUNES, TUNEIN, ETC.

INTRODUCTION  Married 35 years 4 Daughters One in College., Three MBAs. All In Real Estate

 Born in Memphis Tenn. Native IE. San Bernardino. Residence - Riverside 15 years.  University of Redland Graduate  Degrees: BSBAM, & MBA in Finance 8

INTRODUCTION 35 years as Lender/Mortgage Banker 25 years as Real Estate Agent |15 Years Broker Co-Founder of Frazier Group Realty President of The Power Is Now Inc. Radio | TV | Magazine | Events | Mortgage Services | Real Estate Services | Marketing Services President of The OC Realtist (NAREB) 9

INTRODUCTION The Power Is Now Inc.  The Power Is Now is a multimedia company has been around since 2009  The Power Is Now Inc. is licensed to sale real estate CAL BRE 1980407

 The Power Is Now Inc. is license to broker mortgage loans NMLS 1435243  Founder and Broker Eric L. Frazier MBA CAL BRE 01143484 & NMLS 461807 As a Mortgage Brokerage, The Power Is Now Mortgage Services has access to many lenders that offer programs for first time homebuyers, move up buyers, investors, churches, non-profits and foreign nationals. We are a full service mortgage brokerage.

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MISSION The mission of the Power of Now Inc., is to inspire, educate, and empower real estate professionals, and consumers to build wealth through real estate with information, services and support that will give them the power to act now for their future.

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VISION The vision of the Power is Now is to be a powerful resource for real estate professionals, and consumers to buy and/or sell real estate to achieve their personal, family and business goals to build wealth and leave an inheritance and legacy for their family. We intend to become the largest minority owned real estate and mortgage brokerage in the state of California by 2022.

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OUR COMPANY SLOGAN

We Make Homeownership Dreams A REALITY

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OUR COMPANY MANTRA We are at our best and we maximize our success when we act now. Our Power Is Now!

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First Time Home Buyer YOUR POWER IS NOW TO BUY 15

YOUR POWER IS NOW •To change your life and buy real estate now •To stop making excuses for where you are •To start taking action instead of procrastinating •To stop chasing lower rent •To bring stability to your family •To restore & maintain credit •To save money for emergencies

•To payoff your credit card debt

•To live on a budget and have a plan •To stop spending money indiscriminately •To live within your means & for others

•To stop financing clothes and shoes •To stop financing cars and vacations •To buy a home and start building wealth

•You have the Power to DO IT NOW! 16

THE PATHWAY TO POWER & WEALTH IS TO OWN REAL ESTATE NOW www.neverrentagain.com Building Wealth with Real Estate

THE POWER IS NOW WEALTH INITIATIVE www.neverrentagain.com Building Wealth with Real Estate

WWW.NEVERRENTAGAIN.COM WELCOME TO THE HOMEBUYERS CLUB

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CHANGING YOUR MINDSET TOWARD FINANCIAL LITERACY AND WEALTH BUILDING.

Five Key Objectives

THE POWER IS NOW WEALTH INITIATIVE • 1.

Five Objectives: Knowledge - Knowledge is the Power you need to build wealth. 

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Commitment to Financial Independence – We must take Individual responsibility for our lives. 

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Knowledge always comes before money or the money will soon be gone.

Commitment requires disclipine and discipline requires a budget and accountability

Investment in real estate - We must prioritize ownership in real property as opposed to personal property. 

Real Property appreciates. Personal property depreciates.

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THE POWER IS NOW WEALTH INITIATIVE 4.

Financial and Credit Management - We must live within our means and not abuse credit.  

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Credit is not income - It is a convenience for cash.

Good credit is the beginning of building wealth. Good credit is a Fico Score of 720 to 799 higher. Great credit is 800 to 850.

Creating Wealth - We must save money to buy real estate & other assets that appreciate in value.  

Buy and Hold, or Buy, Sell and Buy again and hold - building a legacy of wealth.

We must be intentional about leaving a legacy of wealth and an inheritance for our family.

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THE POWER IS NOW WEALTH INITIATIVE GO TO OUR HOME PAGE: WWW.THEPOWERISNOW.COM AND TAKE THE PLEDGE

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10–Point Wealth Building Pledge https://thepowerisnow.com/wealth-initiative/ 26

THE POWER IS NOW WEALTH INITIATIVE

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THE STATE OF HOUSING ON THE DECLINE FOR AFRICAN AMERICANS 28

RESEARCH STUDY ON THE WEALTH GAP Brandeis University Institute of Asset and social Policy RESEARCH AND POLICY BRIEF FEBRUARY 2013 The Roots of the Widening Racial Wealth Gap: Explaining the Black-White Economic Divide

Authored by: Thomas Shapiro Tatjana Meschede Sam Osoro 29

RESEARCH STUDY ON THE WEALTH GAP â—? The goal of the study was to examine the effect of policy and institutional decision-making on how average families accumulate wealth. â—? There was a insufficient number of Latino, Asian American, or immigrant households to include in this report but the results can be applied across communities of color.

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RESEARCH STUDY ON THE WEALTH GAP Data for this analysis was derived from the Panel Study of Income Dynamics (PSID), a nationally representative longitudinal study that began in 1968.

They followed nearly 1,700 working-age households from 1984 through 2009.

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MEDIAN WEALTH In 2009, a representative survey of American household revealed That the median wealth of: White families - $113,149 Latino families- $6,325 Black families - $5,677 The Gross Domestic Product of African American is 1.3 Trillion dollars and 2.1 Trillion dollars for Hispanics.

Why is the median wealth so low?

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YOUR POWER IS NOW TO BUILD WEALTH GDP (Gross Domestic Product) is the total market value of all final goods and services produced in a country in a given year.

The GDP of African American is 1.3 Trillion dollars (13 out of 182 countries) The GDP for Hispanics is 2.1 Trillion dollars (7 out of 182 countries) 33

YOUR POWER IS NOW TO BUILD WEALTH

In nominal data, 15 economies would have gdp above $1 trillion, 62 have above $100 billion and 177 have above $1 billion.

Top five economies accounts for approximately 53.82 %, where as top ten accounts for approx. 67.19 %. top 20 economies add up to over 80%. 92 smallest economies only contribute 1 % in global wealth and 154 lowest ranked constitute only 10 % 34 of total.

GREAT RECESSION AND GREAT GAP The Wealth Gap Research Report Traced the same 1700 families over a 25-year period (1984-2009) and found that the total wealth gap between White and African-American families nearly tripled, increasing from:

• $85,000 in 1984 to $236,500 in 2009

The Wealth Gap: $152,000 and growing 35

THE STATE OF HOUSING FOR MINORITIES •

The Black/Brown-White Economic Divide Real

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African American and Hispanic communities were hit the hardest by the Great Financial Crises from 2007 to 2009

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They have the farthest to climb to get back into the home ownership before home values get back to their pre-recession prices.

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It may be too late for many because interest rates will be rising and home prices are increasing now.

1994 Blacks & Hispanic Homeownership Rates: 40 & 42% respectively.

2004 Blacks achieved a high of 50% 2014 Blacks were at 42.5% and Hispanics 43.5% Hispanics.

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THE STATE OF HOUSING FOR MINORITIES •

The homeownership rate in the U.S. is 63.5 percent overall. The rate among whites is 72.2%, Asians, 56.6%, Hispanic 46.3%, African Americans 41.7%

https://www.census.gov/housing/hvs/files/currenthvspress.pdf

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THE STATE OF HOUSING BY AGE •

The homeownership rate by Age of Householder. Under 35 - 34.7 percent, 35 to 44 - 58.7 percent, 45 to 54 - 69.8 percent, 55 to 64 - 74.8 percent, 65 and over - 79.5 percent.

https://www.census.gov/housing/hvs/files/currenthvspress.pdf

LESSONS LEARNED - GREAT FINANCIAL CRISIS 1. We must save money – Make it your #1 priority now and not later.

2. We must live on a budget – Do not live by hope & faith and beyond your means 3. We must establish an emergency fund – Plan for the worse & expect emergencies.

LESSONS LEARNED - GREAT FINANCIAL CRISIS 4. Stop financing vehicles - Pay cash or limit financing to 12 mos.

5. Become debt free – Save & Buy Stop Borrowing and Buying 6. Buy real property – Buy a house before you buy an expensive car/personal item.

THE STATE OF HOUSING FOR MINORITIES •

If homeownership continues to be the primary vehicle that Minorities use to create wealth then Minorities are on the path to another Economic Crisis and homelessness!

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It’s time to take action and personal responsibility and build wealth.

WEALTH IS THE DIFFERENCE Wealth provides a measure of security when a job loss or personal crisis occurs.

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Great Recession further exacerbated the wealth gap as Blacks and Latinos disproportionally impacted by the bursting of the housing bubble.

Between 2007 and 2010, the average Black and Latino households lost three and four times more wealth, respectively, than the average White household.

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Extrapolating from past trends, we can estimate what the future of wealth inequality will look like in this country. Unfortunately, it doesn’t look good.

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DO NOT GET LEFT BEHIND THE MARKET IS NOT GOING TO WAIT FOR YOU!

WHY ARE AFRICAN AMERICANS SO BEHIND? HOMEOWERSHIP | JOBS | EDUCATION | FAMILY | UNITY

WHY ARE WE BEHIND: HOMEOWNERSHIP - JOBS We have the highest poverty rate In the Nation. It has declined from 31.1% in1976 to 24.1 in 2015 compared to the U.S. which droped from 11.18% in1976 to 13.5% in 2015.

We have the highest unemployment rate of 8.1% compared to Latino at 5.6% and whites at 4.1%.

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WHY ARE WE BEHIND: FAMILY | EDUCATION The black tradition family is under stress: Today 71% of births outside of marriage is to black woman compared to 29% of births to white women.

In 1970, 38% of all births to black women occurred outside of marriage.

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WHY ARE WE BEHIND: FAMILY | EDUCATION The black tradition family is under stress: 50% of black children are being raised by a single parent as opposed to 19% among whites.

In 1970 35% of children where living with a black parent as opposed to 10% of white families.

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WHY ARE WE BEHIND: FAMILY| EDUCATION We have the second highest level of high school drop outs, the highest in sexually transmitted disease and the highest crime rate than any other ethnic group. The highest level of incarnation of men of any other ethnic group.

This is where we are. Today 2017.

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WHY ARE WE BEHIND? LEADERSHIP & AWARENESS •Every freedom we enjoy today has been paid for by blood.

It has been a fight for freedom for African American from our capture in Africa, the middle passage to the day we step foot on American soil, we have had to survive in country among people who viewed us as less than equal.

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WHY ARE WE IN POSITION In spite of our history: We are 12% of the population, born out of slavery, poverty with homeownership rate of 41.7 and growing to 50% very soon if we make it a priority.

We are only12% of the population and our GDP is 1.3 Trillion. 13 out of 182 Countries.

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WHY ARE IN POSITION We are only 12% of the population and we leaders in sports & entertainment, business, science, medicine, education, law, engineering, computers, software development, space, military and have achieve the highest office in the land.

Can we buy a home? Of course we can!

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How do we close the Gap? Buy a home!

Great Recession further exacerbated the wealth gap as Blacks and Latinos disproportionally impacted by the bursting of the housing bubble.

Between 2007 and 2010, the average Black and Latino households lost three and four times more wealth, respectively, than the average White household.

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How do we close the Gap? Buy a home!

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REAL ESTATE WIILL CLOSE GAP THE AMERICA DREAM IS STILL A REALTY

THE POWER IS NOW MORTGAGE SERVICES The Federal Housing Administration (FHA) was created as part of the National Housing Act of 1934 in response to the struggling housing industry following the Great Depression.

Before its creation, only 40% of white Americans were homeowners.

This low homeownership rate was largely due to the limited shortterm financing available, Most loans were offered with three to five-year payment plans and required large down payments often consisting of 50% of the purchase price.

Only the very wealthy and white were able to purchase a home and like now most homeowners are white.

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THE POWER IS NOW MORTGAGE SERVICES The FHA's ability to assume the lender's risk allowed home loans to be spread out over longer terms, resulting lower monthly payments and greater access to mortgage funds.

The FHA established two mortgage insurance programs; one for one-to-four-unit single-family residences (SFRs) and one for multifamily housing units. In 1965, the FHA became part of the U.S. Department of Housing and Urban Development (HUD).

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THE POWER IS NOW MORTGAGE SERVICES •The FHA is a government agency, however its funding is self-generated. It has insured over 34 million home mortgages and over 47,000 multifamily projects since its inception. •Mortgage Insurance premiums fund the program

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Eric L. Frazier MBA President and CEO CAL BRE 01143485 NMLS 461807 800-401-8994 x 703 The Power Is Now Inc. CAL BRE 1980407 NMLS 1435243

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0% DOWN PAYMENT PROGRAM VA LOAN ONE MONTHS RENT WILL GET YOU INTO YOUR DREAM HOME 74

0% DOWN PAYMENT PROGRAM USDA LOAN ONE MONTHS RENT WILL GET YOU INTO YOUR DREAM HOME

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0% DOWN PAYMENT PROGRAM MY HOME & ZIP ONE MONTHS RENT WILL GET YOU INTO YOUR DREAM HOME

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1% DOWN PAYMENT PROGRAM DREAM HOME ONE MONTHS RENT WILL GET YOU INTO YOUR DREAM HOME 81

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PAY ADVANTAGE 3% AND 5% Down Payment 83

SAN JOSE CA - NO LIMIT

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3% TO 5% DOWN PAYMENT | FHLMC •

FICO 640 –

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1x30 Day late in the last 12 months >680

Non – Occupied Co borrower not eligible First Home Buyer Class Required if you are a FTHB. – You do not have to be a FHTB to participate in the program.

• HOME POSSIBLE - 95% LTV / 95% CLTV

– 2 to 4 unit Not Eligible – Secondary Financing allowed to 95% CLTV

• FICO 700 • HOME POSSIBLE ADVANTAGE - 97% LTV / 97% CLTV – 2 to 4 units Not Eligible – No Secondary Financing allowed 85

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3% DOWN PAYMENT | FNMA •

FICO 640

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Non – Occupied Co borrower not eligible First Home Buyer Class Required for at least one borrower.

– You do not have to be a FHTB to participate in the program.

• HOME READY - 97% LTV / 105% CLTV 2 Units allowed 85% LTV /105% CLTV – Secondary Financing allowed to 105% CLTV

• FICO 700 • HOME READY PAY ADVANTAGE - 97% LTV / 97% CLTV – – 3 -4 Units allowed 85% LTV/105 CLTV – Secondary Financing allowed – No Manufacture homes 87

100% GIFT PROGRAM 3.5% OF 15% GIFT OF EQUITY OR DOWN PAYMENT 88

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TAX CREDIT PROGRAM RECEIVE $2,000 TO $3,000 A YEAR IN TAX CREDIT 90

How to buy a 4 Unit Property with Home Secure THE DOWN PAYMENT ASSISTANT MULTI UNIT STRATEGY

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THE “Home Secure” PROGRAM Not having the money for a down payment is no longer an excuse

THE “HELP” PROGRAM Purpose of the Program The “Home Secure” Program provides financing to families and individuals who can afford a mortgage loan but do not have the resources for the down payment and/or closing costs.

What the Program provides The “Home Secure” Program offers financing on FHA, USDA and VA Loans designed to increase homeownership opportunities to low-to-moderate income individuals and families in CA.

WHY WE NEED HELP NOW! •State DAP programs can take too long •County and City DAPs out of funds or limited funds.

•County and City DAPs have more restrictive guidelines/products •Low inventory – Higher prices more money •Sellers market – Higher prices and zero to limited seller credit

•Higher cost of living = consumers have less money to save

THE “Home Secure” PROGRAM HIGHLIGHTS

HELP PROGRAM The program is 1st Mortgage Loan with a 3.5% Down Payment Assistance Silent Second forgivable after 3 years Loan Proceeds can be used for: Down payment: The seller can pay the closing up to 6% Closing costs: If you have the down payment.

Prepaid item(s): Taxes, Hazard Ins., Mortgage Ins., Earnest money: 1 to 2% of the Purchase price Cost paid outside of escrow: Appraisal, Inspection, Credit

Home Secure PROGRAM LOAN LIMITS $424,100 or HUD Loan Limit whichever is Lower

Conforming Loan Limit Riverside

$ 424,100.00

San Bernardino County

$ 424,100.00

Orange County

$ 636,150.00

Los Angeles County

$ 636,150.00

San Diego County

$ 562,350.00

San Francisco

$ 636,150.00

Santa Clara

$ 636,150.00

Contra Costa

$ 636,150.00

HUD Loan Limit Riverside San Bernardino County Orange County Los Angeles County San Diego County San Francisco Santa Clara Contra Costa Alameda

$ 356,500.00 $ 356,500.00 $ 636,150.00 $ 636,150.00 $ 562,350.00 $ 636,150.00 $ 636,150.00 $ 636,150.00 $ 636,150.00

FHA AREA Between Floor & Ceiling

FHA AREAS at Ceiling – 2017

BORROWER QUALIFYING INCOME Borrower qualifications is based on Qualified repayment Income Only the Applicants income used for Qualifying is considered in order to meet the program income limits

All income documented that borrower receives on a consistent basis must meets FHA’s Effective income guidelines (2 year history and is likely to continue for 3 years) For example: Retirement income, Overtime income, Bonus income, parttime income must have a 2 year history and the likelihood to continue.

BORROWER ELIGIBILITY Borrower Eligibility: Be a U.S. citizen, permanent resident alien, or qualified alien Owner Occupied Primary Residence only.

You do not have to be a first time homebuyer to participate in the program You may own other properties – must meet FHA requirements.

Non occupying Co-borrowers/Co-signers are ALLOWED. Meet Credit, income & Loan requirements of the lender & NHF.

PROPERTY ELIGIBILITY Property Eligibility: SFR Single Family Residences PUDs Planned Unit Condominiums Agency Approved Condos 1 to 4 units properties only Manufactured Homes Ineligible: Rental homes Co-ops Investment properties Recreational, vacation or second homes

UNDERWRITING GUIDELINES •

Minimum Credit Scores: – Minimum Credit scores 620 – Non-traditional Trade line – Not allowed must have min. score – 1Do NOT need to be a first time homebuyer (unless you are combining with an MCC – CA only – One Unit only) - No counseling classes needed.

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Max Debt Ratio: – – – – –

Debt Ratio determined by AUS/DU Approved/Eligible 56.9% DR DU – Refer/Eligible: Housing ratio 31% Total Debt Ratio 43% 1 to 3 month reserves may be required if AUS/DU approval is not granted No reserves requirement on DU approved loans • AUS/DU Defined: Fannie Mae’s Desktop Underwriter. An automated underwriting system or decision engine that approves loans or refers them an underwriter for approval or denial 104

PROGRAM SUMMARY • • • • •

NOT Limited to First Time Home Buyers You Can Own other property NO “Recapture Tax” if home is sold later – Unless using the MCC NO Sales Price Limits – just loan limites Works with EEM and MCC Program to help borrower’s qualify CLTV’s up to 96.50% - little (.5%) to no money down & out of pocket closing costs: –

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inspections, credit reports and appraisal fees are included

No Minimum Borrower Contribution Required Ratios stretched up to 56.9% DTI with DU approved/eligible Manual Underwrite 31/43 DTI with DU refer/eligible One to Four Unit Homes must occupy one unit Manufactured Homes with minimum 680 fico score Silent Secont of 3.5% | Seller credit up to 6% Works with FHA, VA, USDA only – No conventional financing Maximum Loan amount 424.1k or HUD County Loan Limit which ever is lower.

Available in State of California only.

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ATR AND ASSET DEPLETION CASH RICH BUT INCOME CHALLENGED 106

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BANK STATEMENT PROGRAM CASH RICH BUT INCOME CHALLENGED 108

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Eric L. Frazier MBA President|CEO|Broker CAL BRE 01143484 NMLS 461807 OFFICE: 800-401-8994 x 703 CELL: 714-475-8629 To schedule a meeting with me go to: https://calendly.com/thepowerisnow/consultation 110

START YOUR APPLICATIONI ONLINE: WWW.APPLYTOBUYNOW.COM JOIN THE BUYERS CLUB TODAY: WWW.NEVERRENTAGAIN.COM RE AGENTS PLEASE BECOME A REFERRAL PARTNER: WWW.NEVERLEASEAGAIN.COM

OR JOIN OUR TEAM:

https://thepowerisnow.com/be-one-of-us/ 111